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ECO3018 : Financial Economics

  • Offered for Year: 2023/24
  • Module Leader(s): Mr Eric Pentecost
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus

Your programme is made up of credits, the total differs on programme to programme.

Semester 2 Credit Value: 10
ECTS Credits: 5.0
European Credit Transfer System


To develop an understanding of tasks facing participants in the bond and stock markets. To introduce students to the Efficient Markets debate. To introduce students to the practical side of financial market risk management, and to develop an understanding of competing views of financial market behaviour.

The module aims to familiarise students with the workings of the financial markets and financial decision making. It is designed to provide an understanding of investment decision making, the main financial models for valuing asset in conditions of certainty and uncertainty, and the importance of market efficiency. Asset values and rates of return will be examined together with the use of portfolios in risk diversification. The course will review the main asset pricing models and consider the problems encountered when testing them empirically. Finally the main theoretical issues that are currently outstanding in this field will be discussed.

Outline Of Syllabus

Introduction to Finance and Investment Appraisal
Valuation and Portfolio Theory
Asset Pricing Models
Efficient Markets
Bond Markets
Options and Futures

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion130:0030:00N/A
Scheduled Learning And Teaching ActivitiesLecture121:0012:00PiP lectures
Guided Independent StudyDirected research and reading133:0033:00N/A
Scheduled Learning And Teaching ActivitiesWorkshops51:005:00Workshops
Scheduled Learning And Teaching ActivitiesDrop-in/surgery11:001:00Pre-assessment clinic.
Guided Independent StudyIndependent study119:0019:00N/A
Teaching Rationale And Relationship

Lecture material provide an overview of the main topics.
Workshops are intended to to go through problem sets to reinforce lecture material, and provide students with opportunity to monitor their progress and understanding.

Assessment Methods

The format of resits will be determined by the Board of Examiners

Description Length Semester When Set Percentage Comment
Written Examination1202A100The exam can be administered online, if necessary.
Assessment Rationale And Relationship

The unseen examination is designed to encourage study across a broad range of topics covered in lectures, whereas the workshops allow students to apply the knowledge gained in lectures to problem solving sets to deepen understanding.

Reading Lists